Ilkeston leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Ilkeston residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Ilkeston you really ought to see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The lawyers that we work with procure Ilkeston lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
In the wake of 6 months of lengthy correspondence with the landlord of her one bedroom apartment in Ilkeston, Sophie initiated the lease extension process as the eighty year threshold was fast nearing. The legal work was concluded in September 2014. The freeholder’s charges were kept to an absolute minimum.
In 2012 we were approached by Dr F Richardson who, having acquired a first floor flat in Ilkeston in August 1997. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparative homes in Ilkeston with 100 year plus lease were in the region of £191,400. The average amount of ground rent was £55 invoiced every twelve months. The lease elapsed in 2080. Given that there were 54 years left we approximated the premium to the freeholder to extend the lease to be within £34,200 and £39,600 exclusive of legals.
Last Christmas we were called by Dr O Díaz , who bought a purpose-built flat in Ilkeston in January 2001. The dilemma was if we could approximate the price could be for a ninety year extension to my lease. Comparative flats in Ilkeston with an extended lease were in the region of £295,000. The mid-range ground rent payable was £45 collected yearly. The lease ran out on 22 February 2100. Taking into account 74 years outstanding we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.